Packard Company Engaged in the Following Transactions During Year 1

question 145

Multiple Choice

Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $950 cash from the issue of common stock. 2) Borrowed $420 from a bank.
3) Earned $650 of revenues cash.
4) Paid expenses of $250.
5) Paid a $50 dividend.During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.) 1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750 cash.
4) Incurred expenses of $360.
5) Paid dividends of $100.What is the amount of retained earnings that will be reported on Packard's Year 2 balance sheet?

• A) $640
• B) $800
• C) $290
• D) $740

---

Definitions:

Body Dissatisfaction

A negative perception of one's own body image, often relating to weight, shape, or size.

Bulimia

An eating disorder marked by episodes of binge eating followed by compensatory behaviors such as vomiting, fasting, or excessive exercise.

Anorexia

An eating disorder characterized by an abnormally low body weight, intense fear of gaining weight, and a distorted perception of body weight.

Eating Disorder Examination

A comprehensive, semi-structured interview used for diagnosing and assessing the severity of eating disorders.